Research On The Impact Of Core Employee Equity Incentive On R&D Innovation In State-owned Enterprises

The Fourth Plenary Session of the 19th Central Committee of the Communist Party of China clearly proposed that state-owned enterprises need to enhance "innovation ability",take innovative talents as the foundation,and improve the incentive mechanism.With the transformation of state-owned enterprises to modern enterprises,in order to enhance the core competitiveness and innovation,equity incentive has become an effective means to promote its further development.The core staff is the key person that the enterprise wants to promote the R&D Innovation,so the scope of equity incentive is extended from the top management to the core staff.The research on the effect of Core Employee Stock Option Incentive on R&D Innovation Will Guide the implementation of core employee stock option incentive in state-owned enterprises.In this paper,first of all,the relevant literature was reviewed and analyzed,the core staff,Equity Incentives,R&D Innovation to define the concept in detail.This paper combs property right theory,principal-agent theory,human capital theory and incentive theory,and analyzes the relationship between these four theories and R&D Innovation and Equity Incentive of key employees in state-owned enterprises.Next,the paper makes an analysis on the Promotion of R&D Innovation by Equity Incentive for key employees in state-owned enterprises,combining the characteristics of equity incentive in state-owned enterprises,it is found that the implementation of core employee equity incentive in state-owned enterprises can stimulate R&D innovation by optimizing innovation environment,strengthening innovation output and improving innovation effect.The article further uses the representative state-owned enterprises in the Steel Industry Baosteel shares for in-depth study.Baosteel shares in the steel industry during the downturn to adhere to quality strategy,in order to improve product competitiveness,incentive core employees baosteel shares in 2014 and 2017 respectively implemented two periods of equity incentives,the market responded well and successfully unlocked several periods.The object of stock option incentive plan of Baosteel is a typical core employee stock option incentive,which involves a wide range.Through the case analysis,it is found that Equity Incentive can promote the R&D Innovation of enterprises,the main performance is that the core R&D personnel continue to grow,R&D input is constantly strengthened,the quality of innovation output is high,and the economic benefits exceed the industry average.However,there are some problems in the process of implementing stock ownership incentive for core employees in Baosteel.Finally,the article from the state-owned enterprises and The government two perspectives for the implementation of state-owned Enterprises Equity Incentives to provide recommendations for reference.